The Uber app on an iPad. (AP/Patrick Semansky)

Proposed class action against Uber can proceed

Plaintiff argues Uber drivers are employees, entitled to a minimum wage, vacation pay and more

A proposed class-action lawsuit against the ride-hailing company Uber filed by one of its drivers will go ahead after Ontario’s top court reversed a lower court decision that would have sent the matter to arbitration overseas.

In a ruling released Wednesday, the Court of Appeal for Ontario says a clause in Uber’s services agreement that requires all disputes to go through arbitration in the Netherlands amounts to illegally outsourcing an employment standard and therefore cannot stand.

READ MORE: B.C. ride hailing regulation battle to carry on into 2019

It further concludes that the clause takes advantage of the significant power and financial disparity between Uber and its drivers, who would bear up to US$14,500 in filing fees just to begin the arbitration process, no matter the amount at stake in the dispute.

“I believe that it can be safely concluded that Uber chose this arbitration clause in order to favour itself and thus take advantage of its drivers, who are clearly vulnerable to the market strength of Uber,” the appeal court said. ”It is a reasonable inference that Uber did so knowingly and intentionally.”

The lawsuit, which claims Uber drivers are employees rather than contractors and thus subject to Ontario’s labour legislation, had been stayed earlier this year by a motion judge who found Uber drivers were bound by the arbitration clause.

The three-judge appeal panel says the motion judge erred on several points, including in considering the arbitration clause like the kind seen in “normal commercial contracts” where the parties are relatively equal in power and sophistication.

A spokesman for Uber Canada says the company will be reviewing the appeal ruling.

The appeal court ruling does not deal with the claims made in the lawsuit, which will be tested in civil court. Nor does it rule on whether the suit qualifies as a class action.

The man behind the suit, David Heller, is a 35-year-old driver for UberEats, a service that calls on drivers to deliver food from restaurants to Uber customers. He argues that Uber drivers are employees, which makes them entitled to a minimum wage, vacation pay and other protections under Ontario’s Employment Standards Act.

Paola Loriggio, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Paramedics union raises alarm over spike in out-of-service ambulances

Staffing shortages affecting service levels in Kootenays

West Kootenay rod and gun clubs slammed for animal-killing contests

Wildlife activists are targeting the club and two other B.C. organizations

Interior Health hospitals to serve more made in B.C. food

New initiative by the Ministry of Agriculture to serve more B.C. produced food in hospitals

VIDEO: Restaurant robots are already in Canada

Robo Sushi in Toronto has waist-high robots that guide patrons to empty seats

Permit rejected to bring two cheetahs to B.C.

Earl Pfeifer owns two cheetahs, one of which escaped in December 2015

Real-life tsunami threat in Port Alberni prompts evacuation updates

UBC study says some people didn’t recognize the emergency signal

Care providers call for B.C. seniors’ watchdog to step down

The association also asks the province to conduct an audit and review of the mandate of her office

Nitro Cold Brew Coffee from B.C. roaster recalled due to botulism scare

“If you purchased N7 Nitro Cold Brew Coffee from Cherry Hill … do not drink it.”

B.C. man gets award for thwarting theft, sexual assault – all in 10 minutes

Karl Dey helped the VPD take down a violent sex offender

Baby left alone in vehicle in B.C. Walmart parking lot

Williams Lake RCMP issue warning after attending complaint at Walmart Wednesday

College of the Rockies to add 96 beds for student housing in Cranbrook

$17.7 million project featuring six cottege-style buildings to be completed by 2020

Nowhere to grieve: How homeless people deal with loss during the opioid crisis

Abbotsford homeless advocate says grief has distinct challenges for those living on the streets

Most Read